The Real Reason Most American Cars Haven’t Gained Traction in Japan
Despite some legitimate concerns buried in the rhetoric, “trade barriers” should not be confused with market dynamics and consumer preferences.
When I was earning my MBA in the mid-2000s, not a day went by when I wasn’t pouring over a case study. As a car enthusiast, the business vignettes from automotive-industry case studies were naturally the most memorable. These cases are where I first learned that, up until the mid-1990s, most American cars sold in Japan were left-hand drive. In other words, American auto manufacturers somehow expected the typical Japanese consumer to purchase and drive a car with the steering wheel on the “wrong” side of the vehicle — an incredible inconvenience, to say the least.
This practice started to change in the latter half of the decade, but the damage was already done. American carmakers had developed a reputation for ignoring the tastes and needs of Japanese consumers, and we all know that you never get a second chance to make a first impression.
Fast forward to the present, and besides one exception, American cars have still failed to achieve a notable presence on Japanese roads. Ford exited the market in 2016 and General Motors has positioned itself…
